HB 108: RURAL INFRASTRUCTURE TAX CREDIT

An Act Relating To Taxation; Creating The Rural Infrastructure Tax Credit.

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MILD HB 108
RURAL INFRASTRUCTURE TAX CREDIT

Legislative URL:

HB 108 on nmlegis.gov

Emergency Clause:

No

Germane:

N/A

Location:

HWMC

Action:

HPREF [1] not prntd-HRC [5] w/drn-prntd-ref- HBEC/HWMC-HBEC [9] DP-HWMC API.

Issue(s):

General Interest

Related Legislators

Bill Sponsor:

James Strickler

Related Documents

Downloads:

Introduced
HBEC Committee Report
Fiscal Impact Report

Summary

This bill, for the Economic and Rural Development Committee and the Jobs Council, creates the Rural Infrastructure Tax Credit, available prior to January 1, 2022 to a taxpayer who invests at least $1,000,000 in a commercial enterprise project that meets certain criteria including, among others, that: it is not located within 10 miles of a municipality with a population of 55,000 or more; its purpose is to manufacture goods, extract natural resources or process raw materials for sale; and it includes the construction of at least one building.

The Rural Infrastructure Tax Credit is limited to 30 percent of the cost of each qualified investment, with a maximum credit of $1,000,000 for each of as many as three qualified investments in a taxable year. The total amount of Rural Infrastructure Tax Credits may not exceed $10,000,000 in any calendar year.

A possible benefit of this bill might be stimulation of economic development and job creation in rural communities. A potential concern might be that it may encourage the extraction of natural resources.